Recommending the appropriate investment asset allocation model for CBA company pension plan.

Allocation models :

1. Conservative income model (40% stock &60% income)
2. Income model (50% stock % 50% income)
3. Conservative income & Growth model (60% stock & 40% income )

Additional facts in order to make a recommendation

1. The employer is responsible for all pension contributions. The employees do not contribute to the pension fund. Employees have the option of contributing to a 401k plan.The company matches 401k up to 3% of pay with a dollar maximum of $ 6000 per year per employee.
2. All employees of the firm are eligible to participate in the pension plan after they have been employed with the firm for one year. There is a 3-year cliff vesting schedule.
3. The monthly pension annuity paid to retired employees is not indexed for inflation.
4. The average age of the retired employee is 65. The earliest age at which an employee can draw a pension if retired is 60.

Which asset allocation model is most appropriate for the firm and why